-In Exhibit L-2, the table shows the market shares of five firms that operate in three different industries. The four-firm concentration ratio in Industry I is equal to
A) 20 percent
B) 100 percent
C) 80 percent
D) 60 percent
E) 40 percent

Question

-In Exhibit L-2, the table shows the market shares of five firms that operate in three different industries. The four-firm concentration ratio in Industry I is equal to
A) 20 percent 
B) 100 percent 
C) 80 percent 
D) 60 percent 
E) 40 percent

Quizplus · Accepted Answer

The four-firm concentration ratio is calculated by summing the market shares of the four largest firms in the industry. If the total market share of the four largest firms in Industry I is 80 percent, then the concentration ratio is 80 percent.

-In Exhibit L-2, the Table Shows the Market Shares of Five